If the Working-Age Population in an Economy Shrinks, Real GDP

question 133

Multiple Choice

If the working-age population in an economy shrinks, real GDP can still grow if

• A) work hours per week decreases, to spread work among more workers.
• B) labor productivity increases rapidly enough.
• C) consumption by households increases rapidly.
• D) spending by firms and the government increases.

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Definitions:

Salary

Regular payments made by an employer to an employee, typically on a monthly or biweekly basis, in exchange for professional services rendered.

Capital Balances

The amount of equity ownership a partner has in a partnership, often represented as the difference between their contributions to the partnership and any withdrawals.

Net Loss

Occurs when a company's expenses exceed its revenues during a specific period, indicating a negative financial performance.